A 'transfer
of calling'
is taken not to break the continuity of service of a transferred employee. For example, an employee who is transferred from a former employer to a new employer as a result of the sale of a business is viewed as a transferred employee.
Generally, the entitlements of a transferred employee are calculated on the total period of employment or service with both the former employer and the new employer.
In respect of leave, the new employer takes on the liability for all leave entitlements accrued by the transferred employee with the former employer.
In respect of dismissal, calculation of the number of week's notice of dismissal for a transferred employee who is later dismissed is based on the total of the service with both employers.
These provisions apply even if the employee was dismissed or stood-down by the former employer within one month prior to a transfer - provided they are re-employed by the new employer within 3 months after the dismissal.
Therefore, continuity of service is not broken in the case of an employee of a business that has changed hands by operation of law or agreement, including an agreement effected by a third person.